What Your Cost Segregation Quote Should Include
Practical guidance for business owners and residential rental investors.
Put every quote into the same scope comparison
Compare property coverage, asset detail, basis reconciliation, delivery format, revision terms and support. Separately identify the tax return, method-change filing and owner-level projection. Do not assume these are included because the study will ultimately be used for tax purposes. AE cost segregation is separately priced from advisory.
Compare the property description first
Check the address, size, ownership, acquisition year and improvement scope on each proposal. Confirm whether separate buildings or later renovations are included. A quote based on preliminary details may need revision after records are reviewed. If two proposals describe different projects, align their assumptions before comparing price.
Separate report work from tax work
List asset analysis, basis reconciliation, report delivery and post-delivery questions. Then list any method-change filing, return preparation, state adjustment and owner-level deduction analysis. Identify who provides each service. Cost segregation is separately priced from AE advisory; neither service should be treated as an unlimited promise to complete every tax task arising from the property.
Read the support and revision terms
Ask what happens if the owner supplies a missing invoice after delivery, the preparer finds a discrepancy or an examiner later asks about the report. Confirm time limits, additional charges and the difference between answering study questions and representing a taxpayer. Save the accepted proposal with the final report so future questions can be evaluated against the actual engagement.
Illustrative decision
One proposal covers a building as acquired, while another also analyzes a later renovation. The prices are not directly comparable until the scope is aligned. Ask how the provider will handle newly supplied invoices and whether the quote covers federal and state implementation.
Records and decisions to prepare
- Identify properties and tax years covered
- List assumptions and missing records
- Compare report and asset-schedule deliverables
- Separate implementation and return fees
- Confirm revision, cancellation and support terms
Primary references for this decision:
Examples illustrate decisions, not guaranteed outcomes. Apply the rules for the relevant tax year and review the underlying facts before filing.
Buyer guides and comparisons · Browse owner tax decisions · Editorial standards
Talk Through Your Situation
Every situation turns on its own facts. Schedule a discovery call and we will walk through what applies to you, what it is worth, and what it would take to put it in place.
Practical review: how to compare cost segregation quotes
Compare cost segregation quotes by putting the same assignment in front of each provider. A provider promising a larger deduction may be using different assumptions, a different property scope, or a different definition of savings. Resolve those differences before choosing.
Send a common request
Provide the address, property type, acquisition facts, service date, improvement history, and available depreciation records. State whether you need only a study or also tax implementation.
Ask each firm to distinguish known facts from estimates. Keep its response with the proposed fee so you can understand what the estimate actually includes.
Ask these ten questions
1. Which taxpayer, parcels, buildings, and improvements does the quote cover? 2. Who performs the property analysis and reviews the final work? 3. What information must I supply before the fee is firm? 4. How will missing records and estimated costs be documented? 5. What final report and asset schedule will I receive? 6. How will the totals reconcile with my existing records? 7. Who determines and completes any filing procedure? 8. Which implementation services are excluded? 9. What follow-up support is included for my tax preparer? 10. What additional fees could arise under this scope?
Write down the answer to each question. A blank answer is an item to resolve directly, not evidence that a provider cannot perform the work.
Normalize the claimed benefit
Ask whether the estimate describes reclassified basis, depreciation, incremental deductions, or tax savings. Those amounts are different.
For a tax-savings estimate, request the assumed usable deduction, tax rate, state treatment, and comparison baseline. Include expected sale timing if it could affect the economics.
Compare total proposed costs
Add study fees, required preparer work, proposed corrections, and separately priced state work. If you already have a CPA, confirm the CPA will accept the handoff and quote the implementation.
AE's published study pricing and planning resources can help you define those questions. AE's advisory and property-study services have distinct scopes; the signed proposal should identify the responsible parties.